Business news from Ukraine

Germany’s state-run development bank (KfW) could provide EUR 60 million to Ukraine for the completion of construction of a breakwater and dredging works at the Odesa seaport and EUR 90 million for overhaul of H08 Zaporizhia-Mariupol highway and restoration of H32 Pokrovsk-Bakhmut-Mykhailivka road.
“Negotiations with KfW on a loan: EUR 60 million to complete the construction of a breakwater in the port of Odesa and EUR 90 million to overhaul H08 Zaporizhia-Mariupol roads,” Deputy Infrastructure Minister of Ukraine for European integration Viktor Dovhan wrote on his Facebook page.
At the same time, according to a posting on the website of the Infrastructure Ministry, Minister Volodymyr Omelyan confirmed Ukraine’s interest in borrowing from the Federal Republic of Germany in the amount of EUR 150 million (the KfW loan) provided for the restoration of transport infrastructure in the eastern regions of Ukraine. In particular, the Infrastructure Ministry plans to implement the following projects: the construction of a breakwater and the implementation of works to deepen the water area of the port of Odesa; repair works at the national road N08 Boryspil-Dnipro-Zaporizhia (through Kremenchuk)-Mariupol on the Zaporizhia-Mariupol road section and the restoration and improvement of the transport and operational condition of the H32 Pokrovsk-Bakhmut-Mykhailivka state-sustained highway.
According to the Infrastructure Ministry, Germany also expressed interest in participating in the modernization of the electric locomotives of JSC Ukrzaliznytsia and in electrifying the railways, in particular, in the south of Ukraine, near the ports.
In addition, as a result of negotiations with Germany, Ukraine will receive an additional 20,000 bilateral permits for road haulage, which will be valid until the end of January 2019.
In addition, the parties agreed to consider the possibility of increasing the quota of permits for 2019.

The Ukrainian Sea Port Authority plans to double dredging works at Ukrainian ports in 2019, bringing the volume of projects to 16.335 million cubic meters, the press service of the authority reported after Dredging day 2018 held in Odesa. “This figure reflects the amount of work that the Sea Port Authority plans to start in 2019 compared to the amount of work that was planned to start in 2018,” the press service of the authority told Interfax-Ukraine.
At the same time, the authority said that the consolidated data on the implementation of the dredging plan for the current year are now being collected, work on individual facilities is proceeding as part of the plan, and for some of them even ahead of schedule.
The plans for 2019 include the continuation of dredging at the ports of Chornomorsk and Yuzhny (both Odesa region), including work to dredge the first boot basin of the Sukhy estuary of the Chornomorsk port in the amount of 1.1 million cubic meters with a planned period of four months, as well as in Yuzhny port (second and fourth launch complexes) in the amount of 6.339 million cubic meters with a planned implementation period of 21 months.
To maintain the passport depths, it is planned to carry out work in the amount of 8.88 million cubic meters in the ports: Kherson, Reni, Izmail, Odesa, Berdiansk, Mariupol, as well as on the Buzko-Dniprovsky-Lymansky canal; Kyiv, Kamianske, Kaniv, Kremenchuk, Dniprodzerzhynsk, Dniprovske and Kakhovka water reservoirs.

China Harbour Engineering Company Ltd. (CHEC) on August 8, 2018, began dredging on the offshore maritime approach channel to Chornomorsk Port and in the operating area of the first boot basin of the Sukhy estuary. The dredging will allow large vessels with a draft of up to 14.5 meters, such as Capesize, deadweight up to 100,000 tonnes and containerships with a capacity of 8,000 TEU to the current and planned reconstruction of deep-sea quays, the press service of the Ukrainian Sea Ports Authority (USPA) has said.
The dredging project was developed by the Infrastructure Ministry’s institute and ChornomorNIIIProject. It will deepen the approach channel from 14.5 m to 16 m and extend the approach channel from 1,400 m to 1,600 m. The width will remain the same – 150 m. Dredging of the water area of the first boot basic of the Sukhy estuary will increase the depth in its central part up to 15 m. The total amount of dredging of Chornomorsk Port will be about 2 million cubic meters, including more than 500,000 cubic meters in the approach channel and about 1.5 million cubic meters in the water area. It is planned that the work on the projects will take two to five months.
The cost of the work is UAH 404.1 million without VAT. Of this amount, UAH 87.1 million will be spent on dredging of the channel, and UAH 317 million on increasing the water area. To carry out dredging in Chornomorsk, CHEC mobilized a dredging fleet of 15 vessels. All of them have already arrived in the port water area. As previously reported, CHEC was selected to conduct dredging operations at the port of Chornomorsk as a result of open tenders in the electronic public procurement system ProZorro on March 13, 2018.
CHEC also conducts dredging in the port of Yuzhny. In May 2017, the Chinese company and USPA signed two contracts, one of which has already been completed three months ahead of schedule, and the second is 70% completed.

The Ukrainian Sea Port Authority plans to carry out dredging works in the water areas of Ukrainian seaports before 2019, Head of the Ukrainian Sea Port Authority Raivis Veckagans said. “This year our goal is dredging in all ports. Today we have a number of signed agreements… on April 5, 2018 we will sign a contract for dredging in Chornomorsk,” he said. Veckagans also said that he expects an increase in the export of goods in 2018 thanks to, in particular the increase in the capacity of the ports, as well as in relation with a decrease in port dues rates.
As reported, the seaports of Ukraine in 2017 handled 132.9 million tonnes of cargo, which is 0.9% higher than in 2016.

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